Best Final Expense & Burial Insurance For Seniors

Learn how these plans work, the requirements, how much it will cost, the best companies for seniors, and how to avoid a two-year waiting period.

How Does Burial Insurance For Seniors Work?

Burial insurance for seniors, which is also known as funeral insurance or final expense insurance, is a type of no medical exam whole life insurance policy meant to pay for your burial and other final expenses.

The cash payout from the policy will give your family the money necessary to pay for cremation costs, burial costs, funeral service, outstanding debts, medical bills, credit card debts, or anything else required after death. If all the money is not spent on the funeral, your beneficiaries can use the remaining funds any way they want.

Because a burial policy is a type of whole life insurance, the premiums will never increase, the death benefit won’t decrease, and it lasts forever and builds cash value. The coverage amounts are generally smaller- usually $50,000 or less.

One of the most unique elements of a burial insurance policy is the lenient underwriting. Despite severe health issues, seniors can still qualify for a new policy, which is not true for traditional life insurance policies.

There are two types of burial insurance plans for seniors.

• Simplified issue: These plans are the least expensive and can offer immediate peace of mind because the full death benefit pays out starting on day one (no waiting period). You don’t have to take a medical exam to qualify, but you must answer health questions. These plans are often called “no exam funeral insurance.”
• Guaranteed issue: Commonly referred to as “guaranteed acceptance,” these plans have no health questions because your approval is guaranteed. They have higher premiums than simplified issue policies, and there’s always a two-year waiting period. If you die during the waiting period, the insurance company will only refund your premiums plus a tiny amount of interest. The waiting period does not apply to accidental death.

Which Companies Have The Best Burial Insurance For Seniors?

There are dozens of final expense life insurance companies for seniors. And while there is no way to select just one for each person, we narrowed it down to the top five.

If you’re a senior and need burial insurance coverage, check out these five companies because your best burial insurance policy is probably with one of them.

1) Mutual of Omaha

Founding Year: 1909

A.M. Best

A+

Superior

BBB

A+

Accredited

Choice Mutual Rating

5.0

Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.

NAIC Complaint Index

0.97

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

Living Promise whole life insurance from Mutual of Omaha is one of the least expensive burial insurance policies for seniors.

Their level benefit plan has no waiting period if you’re approved.

You will probably qualify for a Mutual of Omaha burial insurance policy unless you’ve had a recent heart attack, stroke, cancer, or significant chronic illnesses.

On a side note, they also offer inexpensive life insurance coverage for babies if that interests you.

2) Aetna

Founding Year: 1853

A.M. Best

A

Excellent

BBB

A+

Not Accredited

Choice Mutual Rating

4.5

Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.

NAIC Complaint Index

0

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

Aetna Life Insurance is probably your company if you need life insurance for a senior over the age of 80. Shockingly, they will accept new applicants as old as 89.

They offer immediate no-exam life insurance options to seniors with serious health conditions such as COPD, diabetes, Parkinson’s, multiple sclerosis, and atrial fibrillation, to name a few.

Another positive feature of Aetna is its very lax rules regarding beneficiaries. For example, they will allow you to name a friend or funeral home as the beneficiary. Not all final expense carriers will allow that.

3) Aflac

Founding Year: 1955

A.M. Best

A+

Excellent

BBB

B

Accredited

Choice Mutual Rating

4.5

Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.

NAIC Complaint Index

2.98

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

Aflac final expense insurance is an excellent option whether you’re healthy or have severe conditions like COPD or Parkinson’s. They ranked #3 on our list of best burial insurance companies.

In addition to them accepting many health issues, their prices are in line with most other providers. In particular, they offer some of the cheapest burial insurance for seniors over 70.

4) Royal Neighbors of America

Founding Year: 1895

A.M. Best

A

Excellent

BBB

A+

Accredited

Choice Mutual Rating

4.0

Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.

NAIC Complaint Index

4.56

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

Royal Neighbors of America isn’t a name you’ll see on TV, but that doesn’t mean they aren’t trustworthy or financially sound. Just look at how long they’ve been in business and their financial ratings.

Seniors with diabetes, past heart issues, past instances with cancer, and many other high-risk health issues can still qualify for their level benefit senior life insurance.

In addition, their prices are in line with most other final expense companies, so you can trust that you’re paying a fair price with them.

5) American Amicable

Founding Year: 1910

A.M. Best

A

Excellent

BBB

A+

Accredited

Choice Mutual Rating

4.0

Choice Mutual’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.

NAIC Complaint Index

2.46

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

There are many cases where American Amicable has the best funeral insurance for seniors.

For example, people with mental health issues such as anxiety, depression, bipolar disorder, or schizophrenia can get rock-bottom rates and no waiting period coverage.

Their smoker rates are among the lowest in the nation. Also, pipe and cigar users can actually get a non-tobacco rating.

That could save you as much as 40% on your insurance premiums.

How Much Does Senior Final Expense Insurance Cost?

The average cost of funeral insurance for seniors is about $50-$150 per month for a policy in the $10,000-$15,000 range.

All life insurance rates vary based on your health, age, gender, state of residence, and the amount of coverage you buy.

How To Get Funeral Insurance For Seniors With No Waiting Period

You have to answer health questions to get a policy with no waiting period. You don’t have to take a medical exam but must complete a health questionnaire.

Remember that most people, despite past health ailments, can qualify for immediate coverage. You don’t have to be in good health.

Don’t mistakenly assume you will have a waiting period due to your past ailments.

That is not true for most applicants. Unless you have a terminal illness, heart failure, or dementia, you can probably qualify for an immediate coverage policy.

If you want a plan that immediately covers you, call us at 1-800-644-2926. We have over 15 different insurance companies that we partner with.

If immediate coverage is possible for you, we’ll find it.

How To Find The Best Burial Insurance For Elderly People

No matter what product you’re buying, it’s no secret that you should compare offers from multiple companies before you commit to one.

The same is true when looking for an affordable final expense policy for seniors.

Browse websites like Choice Mutual that allow you to compare free quotes from multiple insurance providers. That will give you a good sense of what coverage will likely cost you.

In the end, if you want a life insurance policy with no waiting period at the lowest price possible, you will need to speak with an agent.

It’s helpful to remember that most burial insurance companies that sell coverage directly to the consumer (no agent involvement) usually impose a two-year waiting period before you’re insured because they are selling you guaranteed issue life insurance (which always has a waiting period).

Generally speaking, only licensed agents can offer the best rates and plans that pay out the full death benefit immediately.

But don’t speak with just any agent. Here are the criteria you should look for when selecting an agency to work with:

• Independence: Be sure to work with an independent agency with access to at least ten insurance companies. They will compare offers from multiple providers to match you with the best one. It’s highly advisable to avoid “captive” insurance companies. Those are companies that have only one insurance company they can offer you. Funeral Advantage is an example of a company that typically prevents its agents from offering anything other than Lincoln Heritage insurance. So be sure to work with a broker who can choose from dozens of insurers to find the best one for you.
• Reputation: Check their online reputation to ensure past customers were satisfied with their service. A bad online reputation usually indicates lousy insurance products and poor customer service.
• Expertise: It’s hard to be a jack of all trades in the insurance business. Be sure to find one that specializes in funeral insurance for seniors. That way, you know you’re dealing with an expert rather than a novice.

Remember, there is no free burial insurance for seniors. Avoid any insurance agent or company that advertises in such a misleading way.

An honest independent agent is your surest path to finding the best life insurance for seniors.

Be Wary Of Term Insurance For Final Expense Coverage

Buying a term life insurance policy to cover end-of-life expenses is risky.

At the latest, a term life plan will generally expire around age 80.

AARP’s final expense insurance is a prominent example of a term life offering for burial coverage. Their primary policy is a term plan that completely expires once you turn 80.

Globe Life Insurance is another option that expires in your 80s.

Both AARP and Globe have the same marketing tactics. They dazzle seniors with their lower-cost term life insurance, hoping they’ll be attracted to the lower prices (which they usually are).

Because term insurance expires, it will always have less expensive premium payments than whole life.

They are counting on policyholders never stopping to consider why the insurance is cheaper.

Sadly, many unsuspecting consumers fall for that trick. Then, on their 80th birthday, they learn the truth because they get a letter telling them they are uninsured.

If you need a life insurance plan to cover the cost of a funeral, you should opt for the peace of mind that permanent life insurance offers.

Term insurance will likely lead to a financial burden for your family members because they will have to pay for your burial costs.

So be very wary of AARP life insurance for seniors for these reasons.

Coverage For Elderly Parents

In short, you can buy funeral expense insurance for your parents or grandparents.

Here’s what you need to know:

• They must agree to the policy being issued. You cannot buy life insurance for a parent without their knowledge and consent. If your parents do not want to participate, just put money into a savings account or buy a pre-paid burial from a funeral home. Even if you have power of attorney, they must still answer the questions and consent. Under no circumstances can you do it for them.

• They’ll need to answer health questions if you want immediate coverage for them. You should gather some details about their past and current health issues before speaking with an agent. With their health information, your agent can determine which company (if any) will approve them for an immediate coverage plan.

Just know that you don’t need your parents on the phone when you initially speak with an agent.

For example, at Choice Mutual, we can give you life insurance quotes, answer your questions, and familiarize you with the application process.

Then, when you’re ready to apply formally, we’ll coordinate a time to connect with both you and your parents.

Frequently Asked Questions